The third quarter has been decidedly positive for the industrial property sector in southern Vietnam. A multitude of ready-to-use manufacturing spaces, factories, and warehouses entered the market. This past quarter also marked an end to years of muted new construction activities, with the Long An province leading the trend. A notable highlight was the introduction of the new industrial park, Nam Tan Tap, providing the sector with 1.7 square kilometres of new area.
With this, the occupancy rate reached 82%, meaning demand effectively consumed almost 1.16 square kilometres of available space. This represents a quarterly growth of 66%. The greatest demand for industrial property was registered in Long An and the Ba Ria-Vung Tau province, accounting for 59% and 28% respectively. By 2026, the supply of new industrial properties is forecasted to increase by around 57 square kilometres. The main drivers for this growth will be the provinces of Long An, Ba Ria-Vung Tau, Binh Duong, and Dong Nai.
All these developments signal a robust recovery of the sector and suggest significant rental rate growth in the upcoming years. An upsurge in investments from both Vietnamese and international investors is anticipated, with the overall supply of ready-to-use factories set to rise by roughly 2.5 square kilometres. Demand is also expected to see an uptick. A noticeable surge is forecasted in the forthcoming quarters, driven by the relocation of factories from China to Vietnam.